Correlation Between CDN IMPERIAL and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL and Coeur Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CDN IMPERIAL and Coeur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN IMPERIAL BANK and Coeur Mining, you can compare the effects of market volatilities on CDN IMPERIAL and Coeur Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CDN IMPERIAL with a short position of Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and Coeur Mining.
Diversification Opportunities for CDN IMPERIAL and Coeur Mining
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CDN and Coeur is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining and CDN IMPERIAL is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CDN IMPERIAL BANK are associated (or correlated) with Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of CDN IMPERIAL i.e., CDN IMPERIAL and Coeur Mining go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and Coeur Mining
Assuming the 90 days trading horizon CDN IMPERIAL BANK is expected to generate 0.73 times more return on investment than Coeur Mining. However, CDN IMPERIAL BANK is 1.36 times less risky than Coeur Mining. It trades about 0.25 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.04 per unit of risk. If you would invest 5,401 in CDN IMPERIAL BANK on September 20, 2024 and sell it today you would earn a total of 839.00 from holding CDN IMPERIAL BANK or generate 15.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CDN IMPERIAL BANK vs. Coeur Mining
Performance |
Timeline |
CDN IMPERIAL BANK |
Coeur Mining |
CDN IMPERIAL and Coeur Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CDN IMPERIAL and Coeur Mining
The main advantage of trading using opposite CDN IMPERIAL and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL position performs unexpectedly, Coeur Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Coeur Mining will offset losses from the drop in Coeur Mining's long position.CDN IMPERIAL vs. Seven West Media | CDN IMPERIAL vs. GFL ENVIRONM | CDN IMPERIAL vs. Perma Fix Environmental Services | CDN IMPERIAL vs. PLAYTIKA HOLDING DL 01 |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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